Believe it or not, the Swedish summer has been fantastic so far. The sun has been shining for weeks and temperatures of around 30 degrees are standard these days. Beaches are crowded, and so are camping grounds. So while relaxing and enjoying the sweet summer weather, why not earning some money at the same time?
Nordic Camping & Resort is one of Sweden’s leading brand in the Camping and Resort industry. The company operates 13 campings & resorts at different locations in Sweden, from Östersund in the north to Helsingborg in the south. Besides traditional camping grounds, Nordic Camping also offers lodging and hotel stays. The company is listed on the Swedish marketplace “Aktietorget” and has a current market cap of around SEK 165m. 2013 Nordic Camping reported revenues of SEK 63m, which meant a y-o-y growth of almost 40%. EBIT reached SEK 13m, implying an EBIT margin of more than 20%.
Yesterday (July 28th), Swedish news agency Finwire published an interview with the CEO of Nordic Camping, Tom Sibirzeff.
Says Mr Sibirzeff: “This is very positive. And I am not only talking about our own company but for the whole tourist industry in Sweden. The weather in Sweden has been great and it has been so over a longer period of time, which is very important. We are very happy about that.”
Ahead of the summer, bookings were already up 5% compared with last summer. Due to the good weather, the previous record levels are history by now. “This is all-time high” says the CEO. “We have had people waiting in line all the way out to the parking lots, be we are doing our best.”
Mr Sibirzeff also highlights the fact that the weather has a lot of positive effects financially. On the one hand, the add-on sale increases due to the increased demand for ice-cream, fruit etc but on the other hand, there is also a positive effect due to improved customer satisfaction. This increases the probability that people book for the coming year straight away. Many customers also decided to prolong their stay for a longer time than usual.
Furthermore, Mr Sibirzeff says that the staff is happier due to the more positive atmosphere overall. Within short, Nordic Camping will release new pricing lists so that customers can book their trips for next year.
“It is very important that we meet this demand fast. This is one of our advantages of being a big player in the industry. Our head office can be much faster and effective compared to family owned camping grounds. It always depends on the weather how long the season actual becomes. The booking situation looks good right now. In August, many European guest are coming.”
Nordic Camping acquired two new grounds during 2014 and Mr Sibirzeff says that both have developed very well so far.
The company will release its Q2 2014 report on August 28th and chances are high that it will be a very nice read.
May be summer continues to be as nice until then so we can all read and enjoy the numbers on the beach.